27.11.2020 – FAST kick-off
Research question: accurate measure of the risk aversion of farmers.
pesticides -> lower variance of returns from farming
pesticides applied before pests arrive
if farming is a lottery, pesticides reduce its volatility
the higher the risk aversion, the higher the pesticide use
with a precise risk aversion measure…
State of the art in risk literature is bad
develop new risk elicitation measure
takes into account noise & cognitive abilities
takes into account risk perception
possibly look for other theories than EU
theory and lab experiments in progress (ANR RETRISK)
FAST: application to the field and farmers
economists assume subjects share the same risk definition
namely:
but subjects think of risk as probability of a loss
implement, test and propose a behavioral policy with an endogenously reducing target
what about endogenous moving targets? - leverage the impact of social norms for policy compliance & success - endogenous targets could be more effective than exogenous - used in the real world: Italian qualif’, pay-what-you-want platforms
A lot. We don’t know much about